JPM says European internet more cautious in 2026 due to AI risks, structural concerns
03/12/2025 09:04
** J.P.Morgan says AI risks and structural concerns make 2026 look more cautious for European internet ** It expects balance between growth and inflation to remain in place, says China could show early signs of recovery in the private sector ** "Falling rates should provide support for this traditionally long duration sector," broker adds ** JPM says structural concerns and lack of positive drivers is likely to hold back most Online Classifieds companies, with competitive pressures set to persist in 2026 will impact Food Delivery ** But since asset prices are low, JPM sees these sub-sectors as vulnerable to M&A and takeout activity ** Brokerage now sees limited scope for valuation or earnings gains in the sub-sectors, saying selective stock picking in other sub-sectors is essential Key companies and rating changes:
| COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
| YouGov YOU.L | Overweight | Neutral | 385p | 375p |
| Trainline TRNT.L | Underweight | Neutral | 230p | 300p |
| Prosus PRX.AS | - | Overweight | - | EUR 79 |
| Auto1 AG1G.DE | - | Overweight | EUR 42 | EUR 40 |
| Scout Gaming SCOUT.ST | - | Overweight | EUR 105 | EUR 103 |
| CTS Eventim EVDG.DE | - | Overweight | EUR 115 | EUR 114 |
| Delivery Hero DHER.DE | - | Overweight | EUR 34 | EUR 31 |
| Ströer | - | Overweight | EUR 48 | EUR 45 |
| Informa | - | Overweight | 1,345p | 1,120p |
| ATG ATG.L | - | Overweight | 685p | 695p |
| Auto Trader AUTOA.L | Underweight | 635p | 630p | |
| Rightmove RMV.L | - | Underweight | 527p | 500p |
| Hemnet HEM.ST | - | Underweight | SEK 159 | SEK 156 |
| Baltic Classifieds BCG.L | - | Underweight | 208p | 194p |
| Vend Marketplaces VEND.OL | - | Underweight | NOK 268 | NOK 257 |